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Art Borden donates to EMU via his IRA

“For the past 6 years I have made my gifts to the EMU university fund, my church and other Christian ministries from my IRA. I ask my IRAcustodian to send a check directly to EMU from my IRA. I avoid the income taxes and the gift counts toward my required minimum distribution since I am over 70½. By using my IRA I can get the equivalent of a tax deduction even though I do not itemize my income taxes. I have saved thousands of dollars in federal and state income taxes by doing this. If you are 70½ or older you may want to do the same thing.”

-Art Borden

IRA Charitable Rollover Now Permanent!

The IRA charitable rollover has become a permanent tax law. The permanent IRA rollover allows people age 70½ or older to make direct charitable gifts (up to $100,000 for an individual or $200,000 for a married couple) from an IRA. The amount given to charity will count toward your minimum required distribution, but does not increase your taxable income.

To make a gift, please consult with your financial advisor. You may also want to read more information about IRA’s below or contact:

Jasmine Hardesty, Esq., director of planned giving
540-432-4971 (direct line) or jasmine.hardesty@emu.edu

IRA Gift Options

You should consider an IRARollover if:

  • You take the standard income tax deduction rather than itemizing deductions.
  • You do not need the income from the required minimum distribution.
  • The additional income from your RMD (required minimum distribution) would result in taxation of your social security benefits or a change in your income tax bracket.
  • You would be unable to take other deductions (such as for medical expenses) due to the increased income.
  • You have maximized your charitable deductions and/or are subject to the 3% limitation on itemized deductions.
  • You are planning to give the IRA to charity anyway.

Rules for 2016

  • You must be age 70½ or older when the transfer is made to EMU.
  • The gift must be from a traditional or Roth IRA. Gifts from a SEP IRA or other types of retirement accounts are not eligible.
  • Checks must be made payable directly to EMU by your IRA custodian. [Caution: Please do NOT have the check issued in your name.] If you choose to also have the custodian mail the check directly to EMU, please let us know since your custodian may send it without including your name.
  • Checks must be postmarked by December 31 of the year in which you want to receive the tax benefits.
  • The maximum amount you can give to charity from your IRA in one year is $100,000 ($200,000 for couples).
  • Your gift must be outright. [For example, it cannot be used to fund a charitable gift annuity or remainder trust.] It may be used to fulfill a pledge.
  • The gift cannot be made to a donor advised fund. [IRA rollover gifts must be made directly to EMUand other charities you support, rather than to or through The Mennonite Foundation or a community foundation, as they are not eligible to receive these gifts.]

Other gift information

  1. Send a letter to your IRA custodian giving them instructions for sending your gift to EMU, 1200 Park Road, Harrisonburg, VA 22802. [EMU’s EIN number is 54-0575812]
  2. Either send a copy of that letter or a separate notification letter to EMU for our records.
  3. You may need to allow 2-6 weeks for processing depending on your financial institution.

Questions? If you have questions about whether to make a gift from your IRA, please contact:

Jasmine Hardesty, Esq., director of planned giving
540-432-4971 (direct line) or jasmine.hardesty@emu.edu

Or call our office toll-free at 800-368-3383 at your convenience.

*This information is intended only as general guidance and should not be construed as legal or tax advice. It is important to check with your tax advisors regarding your specific situation.

Note: This material was updated February 2, 2016.

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